$MCD's BoD approved its 41st consecutive annual dividend increase, lifting the quarterly dividend 7% from $0.94 to $1.01 per share of common stock. The dividend is payable on Dec. 15, 2017 to shareholders of record on Dec. 1, 2017. This brings the 4Q17 dividend payout to about $800MM.

$MCD said it plans to expand its McCafé coffee drinks to the
beverage aisle in 2018 with three new ready-to-drink McCafé Frappes, Caramel,
Mocha and Vanilla, in partnership with $KO. The new drinks, to be produced,
distributed and marketed by the Coca-Cola system, will be available in
re-sealable PET bottles at retailers nationwide.

$MCD relaunched its McCafé experience, introducing new
café-quality espresso beverages and expanded retail offerings. In early 2018,
McCafé will also expand its retail presence by partnering with The Coca-Cola
Company to introduce a line of ready-to-drink McCafé Frappé beverages in three
flavors, Caramel, Vanilla, and Mocha.

Under $MCD’s
Vision 2022 strategy, the opening pace of new restaurants in mainland China is
expected to ramp up from about 250 per year in 2017 to 500 per year in 2022. It
plans to increase the restaurant portfolio mix in tier 3-4 cities to about 45%
of all $MCD restaurants in China and grow Experience of the Future restaurants
to over 90%.

$MCD announced a series of development initiatives for mainland
China termed Vision 2022. The Vision 2022 strategy aims to drive double-digit
sales growth in each of the next five years by increasing the number of
restaurants from 2,500 to 4,500, including delivery hub coverage of over 75% of
restaurants, by the end of 2022.

$MCD has
partnered with CITIC Limited, CITIC Capital Partners, and $CG to operate its businesses
in mainland China and Hong Kong. The deal was completed on July 31, 2017,
creating the largest McDonald's franchisee outside the US. The sale to the China
franchisee includes about 2,500 restaurants in Mainland China and about 240 in Hong
Kong.

$MCD has expanded McDelivery with UberEATS to 13 countries, including
3,500 restaurants in the US in the past three months. McDelivery is now
available across the globe from over 7,800 restaurants in 47 countries and six
continents. $MCD has annual systemwide delivery sales of nearly $1Bil across
various markets in Asia and the Middle East.

$MCD commented that the $AMZN-$WFM deal announcement demonstrates
the disruptive and fast-paced nature of the business world. $MCD continues to
challenge itself and is committed to remain competitive on value. $MCD believes
deliveries are a good example of how the industry is responding to rapidly-changing
consumer expectations.

With regards
to the UberEATS delivery program, $MCD stated that stores near college
locations have seen more success compared to others. There is also some success
in lower socio-economic areas and downtown areas or places where people don’t
have access to cars. $MCD will work with UberEATS on plans for expansion beyond
existing markets.

$MCD expects to close its China-Hong Kong refranchising
transaction in the coming weeks. With its completion, the company will reach
its global refranchising target of about 4,000 restaurants more than a full
year ahead of its original targeted timeline.

The biggest
component of $MCD’s income is franchise margins, which represent about 75% of
total restaurant margin dollars. In 2Q17, franchise margins grew to over $2Bil,
up 8% in constant currency. Company-operated margin dollars were relatively
flat for the quarter while the company-operated margin percentage grew 160BP to
18.7%.

During 2Q17, $MCD grew global guest count by 3% resulting in strong
earnings growth. This strength was broadbased as the company grew comparable sales
and guest counts in all its top nine markets. The UK saw positive comparable
sales along with Canada and Germany. In Japan, $MCD saw double-digit comparable
sales during the quarter.

$MCD reported
a 28% increase in 2Q17 earnings. Net income was $1.39Bil compared to $1.09Bil
in 2Q16. Diluted EPS increased 36% to $1.70 from last year. Consolidated
revenues decreased 3% to $6Bil versus the prior-year period, due to the impact
of the company's strategic refranchising initiative.

$MCD announced Hubert Lee as the Developmental Licensee (DL) for its Taiwan market. $MCD entered into a Multi Unit Franchise Agreement for the Taiwan market with De Yu Co. Ltd., a consortium of investors led by Lee, with Lee holding a 70% controlling stake. Lee will be actively involved in $MCD's business in Taiwan.

$MCD said that it didn't lose momentum in the U.K. since Brexit and it is still investing aggressively in the U.K. In France, $MCD faces challenging macroeconomic environment. In Australia, the company had good results in the last two or three years and it has to adjust with the competition. In Germany, $MCD is off to a slow start in 2017.

$MCD's comparable sales for the International Lead segment increased 2.8% in 1Q17, primarily driven by continued momentum in the UK and Canada's successful launch of All Day Breakfast. In the High Growth segment, comparable sales rose 3.8%, and in Foundational Markets & Corporate segment, it rose 10.7%.